IT firms concerned over govt's slow pace on cloud regulation - Brasscom

Thursday, August 4, 2011

IT companies are uneasy over the pace at which Brazil's government is moving to implement clear regulations on cloud computing, according to local ICT association Brasscom's infrastructure and digital convergence manager Nelson Wortsman.

Firms fear Brazil is lagging behind other sizeable countries that already have some specific legal structure on cloud computing, and which consequently offer a more attractive and secure framework to investors, he said during a cloud computing symposium held in São Paulo. In Wortsman's opinion, in Latin America, Brazil trails Argentina in this sense.

The government's lack of action is undermining cloud computing's relevance and potential, the executive said, citing a study from Gartner estimating cloud computing's global market value last year at more than US$100bn, compared to US$60bn in 2009.

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The cloud computing issues in Brazil not being addressed by the communications ministry or telecoms regulator Anatel include data sovereignty, datacenter location, data privacy and confidentiality, high-speed broadband internet, penetration and, in particular, cost, Wortsman noted.

As an example to illustrate the latter, he estimated that it cost twice as much to use a data center in Brazil compared to the US.

"All those issues need to be put into the government's agenda. It will be a struggle," Wortsman said. "We will be dealing with tax exemption, infrastructure, bureaucracy... but we know how vital all this is to consolidate Brazil as a competitive data center hub."